There was little surprise Monday night when the city of Beaver Dam Administrative Committee voted to eliminate the 3-percent raise that had previously been budgeted for non-represented employees in 2010.
Alderpersons felt the wage freeze was appropriate during a time when their constituents grapple with tough economic conditions, furloughs and layoffs.
What may raise some eyebrows, however, was the committee’s subsequent decision to remove the funding for a 3-percent raise for employees represented by the American Federation of State, County and Municipal Employees Local 157 (AFSCME). Union members will be operating without a contract as 2010 begins, but it is common practice to budget a typical 3-percent raise in order to cover the anticipated retroactive costs of a yet-to-be-reached contract agreement.
The committee action sent a clear message that the city of Beaver Dam intends to ask the union for some wage concessions when negotiations begin.
“The intention is, by taking the salaries out, it is basically saying that we feel this is the way we want to move forward,” city council president Jon Litscher said. “The fact of the matter is the committee, in the deliberation, felt that this was the appropriate mechanism to make that statement. The position of this group is that in these economic times, nobody supports layoffs, nobody wants furloughs, but these are tough times and a pay freeze seems reasonable to some.”
Administrative committee chairperson Don Neuert agreed.
“It seemed hypocritical to me with households taking pay reductions to move forward with 3-percent raises,” Neuert said. “Constituents are expressing their concerns with us. We’ve heard from them. They call us, saying ‘help.’ I think it’s fair to say is that we will start negotiations by asking for a wage freeze in lieu of any layoffs or looking at furloughs. What we’re trying to do is avoid some other very difficult decisions.”
Removing the non-represented employee wage increase will save the city $67,000. Cutting the AFSCME raise will lower the city’s tax levy, meanwhile, by an estimated $37,000.
If an eventual AFSCME contract ends up including a raise in 2010, the city will be forced to cover the retroactive costs using its undesignated general fund.
But that won’t deter the city from doing what it feels is necessary and in its best interest.
“If we have to address it down the road because of bargaining, then we’ll have to deal with it,” Litscher said. “The mechanism is there to pay the salaries down the road if we have to.”
The city’s proposed tax levy is estimated at $7.6 million, a 4.9 percent increase from 2009. The city’s estimated tax rate sits at $6.92 per $1,000 in assessed value, up from $6.64. That means that the average home worth $130,000 would see its city property taxes raised about $28.
The committee will officially approve the budget on Nov. 16 before the whole council votes on it later that night.
dbaulch@capitalnewspapers.com